5 Best European Bank Stocks to Invest In

In this article, we will discuss the 5 best European bank stocks to invest in. If you want to explore similar stocks, you can read 9 Best European Bank Stocks to Invest In.

5. ING Groep N.V. (NYSE:ING)

Number of Hedge Fund Holders: 12

ING Groep N.V. (NYSE:ING) is a major European financial services company based in the Netherlands. With a long and successful history of providing banking, insurance, and asset management services, the company is well-positioned to capitalize on the potential of the European financial services sector and is placed high on our rankings of the best European bank stocks to buy now. The stock has surged 8.10% over the past six months, as of December 1, and is trading at a PE multiple of 12x.

This November, Morgan Stanley analyst Giulia Aurora Miotto raised her price target on ING Groep N.V. (NYSE:ING) to EUR 16 from EUR 14 and reiterated an Overweight rating on the shares. The analyst also named the stock her “Top Pick”. On November 9, Deutsche Bank analyst Benjamin Goy raised his price target on ING Groep N.V. (NYSE:ING) to EUR 16 from EUR 15 and maintained a Buy rating on the shares.

At the close of Q3 2022, 12 hedge funds were bullish on ING Groep N.V. (NYSE:ING) disclosed stakes worth $535 million. Of those, Fisher Asset Management was the most prominent shareholder in the company and held a position worth $438.19 million.

4. Banco Santander, S.A. (NYSE:SAN)

Number of Hedge Fund Holders: 12

Banco Santander, S.A. (NYSE:SAN) is a Spanish global banking group that offers retail and commercial banking services, insurance, and asset management. The company has a long-standing history of stability and profitability and is well-positioned to take advantage of the long-term growth opportunities in its core markets. According to the company’s balance sheet, Banco Santander, S.A. (NYSE:SAN) has a trailing twelve-month operating margin of 38.32% and an ROE of 11.17%. The stock is trading at a PE ratio of 5.23 and is awarding investors with a forward dividend yield of 3.84%, as of December 1. The stock ranks among the best European bank stocks to buy now.

On September 27, Citi analyst Marta Romero upgraded Banco Santander, S.A. (NYSE:SAN) to Buy from Neutral and raised her price target to EUR 3.50 from EUR 3.20. On October 10, Credit Suisse analyst Pamela Zuluaga raised her price target on Banco Santander, S.A. (NYSE:SAN) to EUR 4.10 from EUR 4 and maintained an Outperform rating on the shares.

At the end of Q3 2022, 12 hedge funds held stakes in Banco Santander, S.A. (NYSE:SAN) worth $398.9 million. Of those, Ariel Investments was the top investor in the company and disclosed a position worth $14.39 million.

3. UBS Group AG (NYSE:UBS)

Number of Hedge Fund Holders: 12

UBS Group AG (NYSE:UBS) is a well-established, diversified financial services company with a long track record of success. The company has been in business for more than 150 years and is one of the largest global banking and financial services companies in the world, operating in more than 50 countries. UBS Group AG (NYSE:UBS) is also one of the world’s leading asset managers, with its total assets amounting to over $1.1 trillion, as of September 30, 2022. The stock is placed among the best European bank stocks to buy now.

On October 25, UBS Group AG (NYSE:UBS) posted earnings for the third quarter of 2022. The company reported earnings per share of $0.52 and generated a revenue of $8.24 billion. As of December 1, the stock is trading at a PE multiple of 8x and the company has a trailing twelve-month operating margin of 27.17% and an ROE of 12.63%.

Shortly after the company’s earnings release, JPMorgan analyst Kian Abouhossein raised his price target on UBS Group AG (NYSE:UBS) to CHF 20.70 from CHF 20 and maintained an Overweight rating on the shares.

At the close of Q3 2022, 12 hedge funds were eager on UBS Group AG (NYSE:UBS) and disclosed positions worth $135.45 million. Of those, Pzena Investment Management was the dominant investor in the company and held a position worth $71.55 million.

2. Barclays PLC (NYSE:BCS)

Number of Hedge Fund Holders: 13

Barclays PLC (NYSE:BCS) is a leading global financial services provider and one of the largest banks in the United Kingdom. The company offers a range of services and products, including retail banking, corporate banking, wealth management, and investment banking. The company’s operations span more than 40 countries and its products and services are available to more than 48 million customers worldwide. Barclays PLC (NYSE:BCS) is a profitable European bank that is currently trading cheaply relative to earnings. The company has a trailing twelve-month operating margin of 38.85% and is trading at a PE multiple of 5x, as of December 1.

On October 27, Credit Suisse analyst Omar Keenan raised his price target on Barclays PLC (NYSE:BCS) to 250 GBP from 240 GBP and maintained an Outperform rating on the shares. This October, RBC Capital analyst Benjamin Toms raised his price target on Barclays PLC (NYSE:BCS) to 180 GBP from 170 GBP and reiterated a Sector Perform rating on the shares.

At the close of the third quarter of 2022, 13 hedge funds were long Barclays PLC (NYSE:BCS) and held stakes worth $138.7 million. As of September 30, Arrowstreet Capital is the top investor in the company and has a position worth $75 million.

1. Deutsche Bank AG (NYSE:DB)

Number of Hedge Fund Holders: 14

Deutsche Bank AG (NYSE:DB) is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany. It is one of the world’s largest global financial services companies and is active in a number of areas, including investment banking, asset management, and private banking. Deutsche Bank AG (NYSE:DB) is also a major player in the global foreign exchange, derivatives, and commodities markets. Deutsche Bank AG (NYSE:DB) has a long history of providing financial services to governments, businesses, and individuals across the world. The company has a presence in more than 70 countries and employs over 65,000 people.

Deutsche Bank AG (NYSE:DB) is profitable, undervalued, and pays dividends to shareholders. According to the company’s balance sheet, Deutsche Bank AG (NYSE:DB) has a trailing twelve-month operating margin of 25.72% and an ROE of 5.86%. As of December 1, the stock is trading at a PE multiple of 6.57 and is offering shareholders a forward dividend yield of 2.03%. Deutsche Bank AG (NYSE:DB) is one of the best European bank stocks to buy now.

This November, RBC Capital analyst Anke Reingen upgraded Deutsche Bank AG (NYSE:DB) to Outperform from Sector Perform and raised his price target to EUR 14 from EUR 11.50.

At the end of Q3 2022, 14 hedge funds held stakes in Deutsche Bank AG (NYSE:DB). The total value of these positions amounted to $766.7 million. As of September 30, Hudson Executive Capital is the most prominent shareholder in the company and has a position worth $505 million.

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